stop-limit order

Stop-limit Order

An order placed with a broker to buy or sell at a specified price (or better) after a given stop price has been reached or passed.

Notes:

Stop limit orders are used to buy a stock when it reaches a certain price, this allows investors to buy when the stock has upward momentum behind it.

See also: Limit Order, Stop Loss Order, Stopped Out

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Stop-limit order

A stop order that designates a price limit. Unlike the stop order, which becomes a market order once the stop is reached, the stop-limit order becomes a limit order.

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stop-limit order

A specialized order in which a limit order and a stop order are combined. Once the specified stop price has been reached or exceeded, the stop-limit order becomes a limit order. A stop-limit order differs from a stop order, which becomes a market order when the stop price has been reached or exceeded. A stop-limit order to buy must have a stop-limit price above the market price; conversely, a stop-limit order to sell must have a stop-limit price below the security's market price. In response to a stop-limit order specifying "sell 100 GY 15 stop limit," once the stock sells at or below $15, the order becomes a limit order to sell 100 shares at a price of $15. A variation of the stop-limit order specifies a limit price lower than the stop price.